Cindy's Toys Has an Average Inventory of 1,800 Teething Rings

Multiple Choice

Cindy's Toys has an average inventory of 1,800 teething rings. The carrying cost per unit per year is 5'. Cindy places an order for 3,600 teething rings on the first of each month and the order cost is $25. What is the average inventory using the EOQ?

A) 2,251 units
B) 2,596 units
C) 2,746 units
D) 3,286 units
E) 3,300 units